Callan Introduces Interactive Target-Date Index

Callan’s new index is
constructed from actual glidepath data using no pre-set criteria or
other filters which can make an index vulnerable to claims of being
biased or subjective.

Features of the Callan Target Date Index include:

At-a-glance snapshot of the index and target-date fund peer group’s performance across the full glidepath;

Drill down of performance within each of the target-date vintage years;

View the underlying asset class composition and glidepath allocation at a macro level and micro level; and

Equity
roll down analysis chart that shows the percentage of equity allocation
of the index across the full asset allocation glidepath, along with the
range of equity allocations available.

“Benchmarking
target-date funds is important to plan sponsors from a due diligence
and fiduciary standpoint, but it’s also quite challenging,” said Lori
Lucas, defined contribution practice leader at Callan. “There
are a lot of moving pieces to managing these funds, and the Callan
Target Date Index can give plan sponsors an accurate picture of how
their funds are performing and are invested compared to other
glidepaths.”